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Global Glimpses

“Global Glimpses” follows compliance, risk, and corporate governance news both in Europe and around the world. It covers developments at the International Accounting Standards Board, as well as global regulation, anti-bribery, and corruption enforcement, along with other compliance developments abroad. Global Glimpses is written by contributor Paul Hodgson. Hodgson welcomes questions, comments, and statements from readers on global issues and will address them here when appropriate. Readers can contact him at paul.hodgson@complianceweek.com.

Oct. 22—An investigative report published last week by The Independent revealed that 19 businesses registered in the United Kingdom are under suspicion for involvement in a complex money laundering scheme that cleaned £12.5 billion in illicit money over four years. The report cited corporate secrecy laws that make the United Kingdom an attractive center for money laundering, and it noted efforts to right the situation. Former U.K. Fraud Squad Director David Clarke told the paper, “…at the moment we’re still handing it on a silver platter to the villains.” More inside.

While Belgium has made significant progress in tracking down anti-money laundering and counter-terrorist financial (AML/CFT) activities, a lot more work needs to be done, says a recent report by the Financial Action Task Force. In April, the European Union approved new draft rules that reflect the need of its member states to take into account the development of technology and other solutions at the disposal of criminals. More inside.

The Financial Conduct Authority warns that banks should rethink their anti-money laundering strategies in light of reports that financial institutions have nixed services to customers that may pose potential money-laundering risks. The agency says, “These policies and procedures must be comprehensive and proportionate to the nature, scale, and complexity of the bank’s activities.” See inside.

A first-of-its-kind survey on Canadian compliance professionals conducted by Grant Thornton finds significant weaknesses in the AML compliance practices of Canadian companies. Among the findings: many compliance staff are not consistently visiting their overseas locations and rarely tailor their AML training programs to the specific needs of different groups, particularly their senior management and boards. More survey results and recommendations on how to improve AML compliance programs are inside.

Nordea Bank AB, a major financial institution for the Nordic region, is re-establishing its anti-money laundering program to correct flaws in its processes that resulted in the company paying up to $5.9 million in fines. This is not the first time Nordea has been put in the spotlight for poor AML practices—in 2013, the company was fined for sanctions and money laundering violations. Details inside.

The Basel Committee on Banking Supervision, an international consortium that develops banking standards, has issued its “Basel AML Index,” an annual ranking of country risk regarding money laundering and terrorism financing. The overall conclusion this year, says Joe Mont: A majority of countries fall short in the effective implementation and enforcement of AML laws.

The U.K’s new Office for Professional Body Anti-Money Laundering Supervision said that it will tackle potential weaknesses in the supervisory system that criminals and terrorists may be trying to exploit.

Following revelations from the Panama Papers, Swiss regulators identified serious shortcomings in anti-money laundering processes regarding private clients at Gazprombank Switzerland and, thus, has banned it from accepting new private clients until further notice.

EU ambassadors on 19 December 2018 agreed to give the European Banking Authority (EBA) more power over anti-money-laundering supervision for financial institutions, but some doubt the effectiveness of these measures.

Danske Bank said it might again become subject to a formal investigation in France, instead of being an assisted witness, in connection with an ongoing investigation into organised money laundering of tax evasion proceeds.